Welcome to 'BoomTown': Washington, D.C.
Who's getting rich off your money?
- Duration 7:54
- Date Jan 25, 2013
Who's getting rich off your money?
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And welcome to the special edition of Hannity now for the next hour we're going to be taken a close look at the business of government in Washington DC and how does making a lot of people very rich with your hard earned money.
Now we -- author Peter Schweitzer -- nation's capital to take us inside this new American Boomtown.
Take a look.
Washington DC the nation's capital.
Has seen a federal power and increasingly.
A town that is very rich.
The local native Americans named -- river Potomac.
Which means where goods are off loaded or where attribute his -- Today that tribute comes in the form of trillions of dollars of taxpayer money com.
The -- into this city.
-- one out of every six Americans.
Worries about where their next meal was coming from.
-- the highest rate of fine wine consumption.
In the united state.
Well one out of four Americans housing mortgage that is under water.
Seven of the ten wealthiest counties in the United States or counties around this region.
Washington DC now has the highest per capita income in the entire United States.
They just fast silicon -- You're going to discover that Washington DC.
I -- that used to be a town of -- bureaucrats.
Is now a town of moss Roddy dealerships.
Luxurious homes and -- shops.
It's a Washington DC that a lot of people never seen where they take their scores -- they go to the but -- the Washington DC that reflects the reality of our country today.
The great American writer F.
Scott Fitzgerald once roads that the rich are different from you and me.
America's previous boom towns became wealthy because they produce something separate Cisco during the gold rush.
Abilene Texas cattle.
And of course Detroit during the heyday of the American automobile.
All of those boom towns became very wealthy in their time because they created something they created something -- This boom town its wealth comes from extracting it from the rest of the country.
Boom town is something that no one in Washington wants to talk about when they do they tend to blame the other side.
But the reality is today that in Washington DC.
The business is not politics the business his money.
And joining us now Peter Schweitzer and filmmaker Steve Bannon great -- good to see you we're -- we're gonna really open up.
A can of warms your tonight.
All right so.
Washington DC three of the wealthiest but counties in the country seven of the top ten yes that's right that's right and this is -- thing the people don't realize about Washington DC.
We think given his receipt of federal power politics reigned supreme.
But it's a business there's a business model there and it's that really what exists is what we call the permanent political class.
We think of Republicans and Democrats and there are philosophical differences but the end of the day they're all primarily looking for way to make money and you don't make money by shrinking government.
You make money by growing up you know you made some comparisons one or six Americans in poverty one in four Americans their mortgages are underwater meaning.
They they can't even get -- way out of their house without losing.
Just a great underreported story of our time right now because you've got this -- extraction the rest of the countries in the financial and economic crisis much of the country Tomasson -- -- depression.
And -- you have -- -- with a three richest counties bordering it seven of the top ten.
The big number per capita income is now higher than Silicon Valley the great technology and -- United States.
-- that it's the fourth sitting.
Generating millionaires but you look at every fourth fastest -- -- -- if you look at every statistic.
About people and -- comes Washington DC in the reason this is because you have a massive federal budget that gets allocated.
Through what it it goes a little bit deeper Steve and you're right on all of these points in those statistics should wake people up.
But this move -- a lot of this is built then it's like -- pyramid scheme because they have baseline budgeting.
Every budget every every area of government goes up 678% a year even though still borrowing.
Nearly fifty cents of every dollar they spend.
That's right and Sean what's interesting is it's not only the allocation of federal dollars but there's a lot of money that comes into Washington to determine.
How that money's going to be allocated.
So you've got taxpayer money you've got special interest putting money in Washington DC to influence the process to steer money in their way it is a talent -- wash with cash and the sad reality is that it's only going to get worse it's not going to get better.
The one of the arguments that I have made as the president has so successfully use the class warfare argument says he has.
It's interesting it seems that the politicians are the ones that are greedy.
Power hungry they build up their power by by granting people government programs spending other people's money.
How come they've never got tagged as being greedy and selfish as they now steal from our kids.
-- backs I think no one's ever turn the camera I think that's what we intend to do we -- we're gonna look at this this a bipartisan problem.
This is just ought to be done on Democrats although they are the party of big government.
This is a permanent -- class that is now kind of formed an aristocracy.
And that -- soccer that's -- nothing changes in Washington that's we have these budget debates -- like he said.
If government cuts in growth rates of budgets not cut in the budget itself and I downside could never cut they never cut it in the reason as you can tell.
They've really extracted money through taxes in the and then and ability to bar for their lifestyles.
In addition there's no pressure on them to really cut that is they they really control Wall Street it's not the money controls Washington.
Washington controls the money they have an industrial logic to this business model just like any other business model and that is to extract power from the rest the country in money into a centralized location which is Washington.
You -- you mention in your piece Peter about Mazur Roddy dealerships and fine wines and expensive restaurants.
And the home prices etc.
But these government -- east.
That aren't allowed -- -- if it's probably not government employees it's people that influence government policies so it's people like lobbyists.
People -- government relations people one contract confirms to relieve their businesses whose only Kleiner only customers the federal government.
So it's money did they get slosh around in all those different ways and the reality is that you know I live in Washington DC in the 1980s it was really kind of middle class tell some wealthy areas it's a completely different place now and part of it is the size of the federal budget has grown enormously.
And of course they take the cut of everything comes out so what and what -- they producing when we -- -- we talked about an oil boom.
Gold rush the cattle right -- -- -- all these other they've produced something what does Washington producing except record -- record deficits and telling.
All people we're -- we're -- means -- Social Security we're gonna raise the retirement age to about one hour before you die so you get what at least an hour is what does.
What you paid into your whole life what that says the whole point they have a business model that business model is government and it's bigger government and as -- as he had the ability to borrow.
Right is one thing take tax receipts and bar they're gonna continue to do that and so that's where you're seeing now we're trying to we're trying to.
Put the camera on this business model what you see the lifestyles of the rich and powerful feel a lot more to get to tonight guys stay right there.